3Synovec Company is growing quickly. Dividends are expected to grow at a rate of 22percent for the next three years, with the growth rate falling off to a constant 5 percentthereafter. If the required return is 12 percent, and the company just paid a dividend of$2.35, what is the current share price? (Do not round intermediate calculations andround your answer to 2 decimal places, e.g., 32.16.)

Dividend: Current dividend paid = 2.35 Dividend Increase = 22% So, Year 1, Dividend = 2.35*1.22…

Answered: Synovec Company is growing quickly.…

Foundations of Business - Standalone book (MindTap Course List)

4th Edition

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter15: Using Management And Accounting Information

Section: Chapter Questions

Problem 4DQ

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